The "Lemons" Model Suggests That in Cases of Asymmetric Information

question 31

Multiple Choice

The "lemons" model suggests that in cases of asymmetric information between buyers and sellers:

• A)high-quality goods will slowly drive out low quality goods due to market pressures.
• B)consumers will choose both high- and low-quality goods but the general trend is toward improving quality.
• C)the quantity supplied of goods with better quality tends to decline.
• D)buyers end up paying a high price for high-quality goods and low price for low-quality goods.

---

Definitions:

Emotional Appeals

Attempts to influence others' decisions and actions by invoking emotions rather than logic.

Follower Values

are the beliefs and principles that guide the behavior of individuals who support or are guided by a leader, significantly influencing group dynamics and outcomes.

Charismatic

Displaying a compelling attractiveness or charm that inspires devotion in others.

Extraordinary Leader

An extraordinary leader is an individual who demonstrates exceptional leadership qualities, inspiring and guiding others to achieve remarkable success.